Quality Assurance / Quality Control Program
Diamond drill core was photographed and cut in half with a diamond saw, with one half of the core delivered directly to the analytical laboratory and the other half stored on site for future reference and assay verification. Channel samples cut from the trenches were collected under the direct supervision of Duran geological staff with samples being geologically logged before being bagged and shipped. Assaying was carried out by ALS Chemex (Lima, Peru) a laboratory whose quality control system complies with International Standards ISO 9001:2000 and ISO 17025:2005. Samples were prepared using a four-acid digestion and atomic absorption method for copper and molybdenum, as well as a multi-element ICP analysis. The Company has a QA/QC protocol in place which includes the use of certified standards, blanks, and duplicate samples, check assays carried out at a second laboratory, as well as secure care and custody of samples.
Statistical analyses were performed on coarse duplicates for diamond drill core and pulp duplicates for chemical laboratory analysis. Additionally, grade QA-QC analyses were performed on standards and on blank samples. The conclusions drawn from the QA-QC analyses are as follows:
-- Analyses of duplicates show good precision, indicating that the protocols used for sample preparation and assaying were adequate.-- Analyses of standards used during exploration show good accuracy.-- Analyses of blanks show no serious contamination problems between samples.
The overall conclusion is that QA-QC data generated throughout the Aguila drilling and trenching program meets acceptability criteria and the exploration data can be used with confidence for resource modeling and estimation.
The Author expects to file within the required period, a 43-101 technical report to support the updated resource estimation for Duran's Aguila Project, Peru and that makes the following recommendations;
-- Exploration drilling should continue over the Aguila south (deeper) and Aguila East Expansion area and closing off mineralization to the west of the Aguila area (3,000 metres);-- Exploration drilling on the Pasacancha zone (2 km east) to target copper and molybdenum mineralization down dip of the silver-zinc-lead mineralization and geophysical IP targets (3,000 metres);-- Exploration drilling targeting geophysical IP targets other than the above (2,000 metres);-- A Preliminary Economic Assessment of the "Starter Pit" should be undertaken to evaluate the high grade core of copper/molybdenum resource at Aguila-- Commissioning environmental and socio-economic baseline studies for the project.
The updated resource estimation represents over a 430% tonnage increase in the "Indicated Resource" with a corresponding increase in contained copper of 662 million lbs of copper and 52 million lbs of molybdenum at the Aguila project from the initial resource estimate of 2012. Additional 2012 and 2013 exploration drilling and trenching in the Aguila central core area and a reduction of "unit block size" for modeling purposes (from earlier 12x12x12 meter blocks to 6x6x6 meter blocks for current estimate) contribute to the upgraded tonnage classification. Geostatistical and geological review of the data provide verification of the classification.
A corresponding 35% tonnage decrease in the "Inferred Resource" from the initial resource estimate of 2012 can be attributed to the tonnage converted from inferred to indicated classification and, additionally, the present estimate used methodology that constrained the extrapolation of grades to a 0.1% copper cut-off grade shell. This effectively limited the presence of peripheral lower grade mineralization occurring in the host sedimentary rocks that had been captured in the earlier estimate.